LA Councilwoman Questions City's Vast Undeveloped Property Holdings Amid Tax Hike Proposals

Los Angeles City Councilwoman Katy Yaroslavsky is questioning why the city is considering raising taxes and fees on residents while it possesses an extensive portfolio of undeveloped or underutilized properties that could be worth billions of dollars. The city owns approximately 7,500 properties, the full value of which is not yet determined.

This inquiry comes as the city faces discussions about affordability and housing shortages. Yaroslavsky suggests that these city-owned assets could offer alternative solutions for generating revenue or addressing the housing crisis. The proposal draws a parallel to New York City's model, which utilizes an economic development corporation to manage its real estate assets.

However, concerns have been raised regarding the potential for mismanagement and corruption, citing examples like San Diego's history of poorly negotiated property leases and financially unsuccessful real estate ventures. To mitigate these risks, any initiative to manage or develop LA's property would require robust, politically independent oversight.

Yaroslavsky's initiative highlights a potential avenue for the city to enhance its revenue streams and potentially alleviate housing pressures by leveraging its existing real estate holdings. She proposes that City Controller Kenneth Mejia conduct an audit of the city's real estate portfolio to provide transparency on what the city owns and who benefits from it.

This audit, she argues, would be a crucial first step in determining which properties could be sold, leased, or developed, offering a potential solution to the city's financial challenges that does not rely on increasing the tax burden on its citizens.